When you think “savings account,” what comes to mind first? Maybe it’s a down payment for a new home, or maybe you’re planning a big vacation. But before you can start saving for big future purchases, you need to make sure you’re prepared for the unexpected with an emergency savings account.
What is emergency savings and how much do I need?
Did you know that 40% of Americans could not cover a $400 emergency today? Creating an emergency savings fund to help you cover the cost of co-pays, deductibles, or small emergencies will ensure you’re not stuck in a situation where you have to borrow money or put it on your credit card should the need arise. Generally speaking, you need between $500-$1,000 at a minimum in your emergency fund — though many financial advisors recommend you save an amount that’s equal to 3-6 months of your income in case of an unexpected job loss, medical emergency, or other catastrophe.
Knowing your deductibles can help guide you in how much you need to set aside to start with. In an insurance policy, the deductible is the amount paid out of pocket by the policy holder before an insurance provider will pay any expenses. With car insurance, for example, the higher your deductible is, the lower your monthly payment will be — but that means you’ll need to be prepared to pay that amount in the event of an accident. So if you have a $1,000 deductible, that should be your emergency savings goal.
Take the first step
Saving $1,000 may seem like a lot, but every penny counts. If you save $20 a week, you’ll reach your $1,000 goal in a year. You can get there even faster if you put aside money you get as a bonus or an annual tax refund. Use our emergency savings worksheet to help you decide how much you want to set aside for your emergency savings and track your contributions.
Once you’ve reached your emergency savings goal, it’s important that you don’t spend this money or account for it in your budget. Keep it somewhere safe but accessible, such as in a separate bank account. Only use this money for an emergency, and if you have to use it, save it again.
Get a head start
Right now, you can get rewarded for opening a new UBT savings account for your emergency savings. In fact, you can get up to $200* when you open new accounts with UBT. Here’s how:
- Get up to $150* when you open a new checking account and meet requirements
- Get a $50* bonus when you open a new savings account and meet requirements
That’s up to $200* to start your emergency savings fund — plus all the benefits that come from working with a family-owned bank that really cares.
Learning Center articles, guides, blogs, podcasts, and videos are for informational purposes only and are not an advertisement for a product or service. The accuracy and completeness is not guaranteed and does not constitute legal or tax advice. Please consult with your own tax, legal, and financial advisors.
*Checking offer not valid for primary accountholder on existing UBT personal checking account(s). Savings offer not valid for primary accountholder on existing Union Savings or MyStyle Savings account(s). Offer not valid if existing checking or savings accounts closed 120 days prior to 06/01/2020. Receive $50 when you open a Simply Free Checking account and have $500 in electronic direct deposits posted within 90 calendar days of account opening. Receive $150 when you open an interest-earning checking account (Bonus, Journey, Premier, or Premium Interest Advantage) and have $2,500 in electronic direct deposits posted within 90 calendar days of account opening. Receive $50 when you open a Union Savings account and maintain a $2,500 balance for 90 calendar days from account opening. Bonus is credited to your active account within 100 days of account opening if you meet requirements. $50 opening deposit required on Checking accounts (Bonus Checking requires $1,000 opening deposit). Union Savings requires $2,500 opening deposit in new money. Various Annual Percentage Yields (APYs) offered for interest-earning checking accounts based on the account and balance maintained. For example, Journey Checking requires a $100 minimum daily balance to earn .05% APY. Union Savings earns .05% APY. APYs accurate as of 05/28/2020. Fees may reduce earnings; rates subject to change. Promotion offers limited to one new checking account and one new savings account per person and cannot be combined with other offers. Journey Checking accounts are designed for people age 50 and over. Premier Checking limited to Private Banking clients. Premium Interest Advantage is limited to residents of Douglas, Sarpy, and Washington counties in Nebraska. Promotions available 06/01/2020 to 09/30/2020. Member FDIC.